BROWER V. GATEWAY 2000, INC.
246 A.D.2d 246 (1998)
NATURE OF THE CASE: Brower (P) appealed the order of the Supreme Court, which granted
Gateway's (D) motion to dismiss P's complaint on the ground that there was a valid agreement
to arbitrate between the parties.
FACTS: Gateway (D) shipped computers ordered from it direct with a warrant provisions
that called for mandatory arbitration if the consumer kept the computer 30 days past
delivery. Ps sued D for deceptive sales practices, breach of warranty, breach of contract,
fraud, unfair trade practices relating to the issue of 'service when you need it.' Ps
alleged that it was virtually impossible to get to a technician for any type of technical
help. D moved to dismiss the complaint based on the arbitration agreement. Ps argued that
the agreement was unconscionable and unenforceable as a contract of adhesion (UCC 2-302) and
invalid under UCC 2-207. The resort to arbitration under the International Chamber of
Commerce (ICC) rules would require advanced fees of $4,000 and travel costs of $2,000 just
to get to France; the forum in which the arbitration would be held was inaccessible in the
U.S as the ICC maintained virtually no ties in the U.S. The loser in the arbitration would
also pay the legal fees of the winner. The lower court dismissed the complaint based on the
arbitration clause and claimed that the contract was not unconscionable. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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